REPORT DIGEST ILLINOIS SUPREME COURT COMPLIANCE EXAMINATION For the Two Years Ended: June 30, 2013 Release Date: January 23, 2014 Summary of Findings: Total this audit: 2 Total last audit: 0 Repeated from last audit: 0 State of Illinois, Office of the Auditor General WILLIAM G. HOLLAND, AUDITOR GENERAL To obtain a copy of the Report contact: Office of the Auditor General, Iles Park Plaza, 740 E. Ash Street, Springfield, IL 62703 (217) 782-6046 or TTY (888) 261-2887 This Report Digest and Full Report are also available on the worldwide web at www.auditor.illinois.gov SYNOPSIS • The Illinois Supreme Court did not have adequate controls over its property and equipment. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS INADEQUATE CONTROLS OVER STATE PROPERTY The Illinois Supreme Court (Court) did not have adequate controls over its property and equipment. • The quarterly property report submitted to the Office of the State Comptroller included 1,166 “lost” equipment items with a total value of $512,617 as of June 30, 2013. These items had been reported missing between 1 and 20 years. • The Supreme Court Library performed a book inventory count on a three-year cycle; however, there was no written approval from the Department of Central Management Services (DCMS) as required by administrative rules. • Two of 40 items tested differed from property records by 53 volumes of books and $5,543. • We noted 112 new items of recordation equipment and power supplies valued at $105,073 had not been transferred to judicial offices and had been kept in storage for 416 to 986 days. (Finding 1, Pages 10-13) We recommended the Court ensure property and equipment records are accurately and timely maintained and updated and accurately reported. We also recommended the Court obtain and maintain DCMS approval for partial inventory of the Supreme Court Library. In addition, we recommended the Court review and strengthen its controls over the purchase of property and equipment. Court management agreed with the finding and recommendation and stated corrective actions have been taken to resolve the issues identified. OTHER FINDING The remaining finding pertaining to computer security weaknesses is reportedly being given attention by the Court. We will review the Court’s progress towards the implementation of our recommendations in our next engagement. AUDITORS’ OPINION We conducted a compliance examination of the Illinois Supreme Court including Appellate Court Districts 1-5 and the Illinois Courts Commission as required by the Illinois State Auditing Act. The Illinois Supreme Court has no funds that require an audit leading to an opinion on financial statements. WILLIAM G. HOLLAND Auditor General WGH:LKW:rb AUDITORS ASSIGNED E.C. Ortiz & Co., LLP were our special assistant auditors for this engagement.